To measure the effect of legislation in Victoria, Australia that increased workers’ compensation benefits, including a raised wage replacement cap for higher earners, on claiming behaviors.
Controlled interrupted time series of monthly claiming volumes and median disability duration, focusing on overall effects, impact among higher earners, and by condition type.
Overall claiming increased 12%, driven by back/neck (18%), and other musculoskeletal conditions (14%). Overall disability duration did not change, though increased 27% among back/neck conditions. Among higher earners, findings on claiming were mixed, while disability duration increased 33%, driven by back/neck musculoskeletal (MSK) conditions (23%). Findings for mental health conditions were mixed.
The effect of benefit generosity on workers’ compensation claiming and disability duration varied by earnings and condition. Effects were strongest among musculoskeletal conditions.